Strategic Management: Analysis of H&M

Strategic Management

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
PESTLE analysis of H&M ..........................................................................................................3
H&M Porter's 5 forces model .....................................................................................................4
Resources and capabilities (VRIO) framework of H&M ...........................................................4
SWOT analysis of H&M ............................................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Strategic management is management and analysis of organizational resources to achieve
the goals of the organization. It is assessing of organization's environment to frame strategies
according and as it keeps on changing. H&M is a multinational clothing retail company for men,
women, teenagers and children. It was founded in 1947 and is now the second largest global
clothing retailers. In the further report Swot framework of H&M will be presented.
MAIN BODY
PESTLE analysis of H&M
Political factor – There are many outlets of H&M in various countries and every country
have different political condition therefore their instability can affect the functioning of the
organisation. Even if firm does not have any expansion strategy like Franchising they have to do
it for regulatory reasons.
Economic factor – The company made profits even after Brexit this is a very good
indication for the business. In coming years the company is also looking forward to set up
manufacturing units in developing countries as the labour rate is low. And these countries have
people with increasing disposable income. Tax laws also also impacts the firm (Perera, 2017).
Social factor – The attitude, habits and lifestyle of people affects the firm functioning as
they have to adapt to the changing trends and interest of customers. The firm has to analyse this
factor so that no group remains untargeted.
Technological factor – As the trend of shopping is shifting from physical stores to
virtual stores. This factor impacts the firm therefore they have to consider and make efforts to
become advanced in using the technology.
Legal factor – There are various legal laws in different countries and the firm has to
abide by all the laws if they have to operate in that country. The firm has to keep in mind health
and safety laws, copyright laws, data protection laws etc.
Environmental factors – These are very important as they are operating in
environmental surrounding and taking many resources from it so it the responsibility of H&M to
follow environmental laws and also reduce the use of ingredients that negativity impacts the
environment.